Mineral Economics

  1. Mine Project Evaluation and Investment Analysis
    1. Time Value of Money
      1. Compounding and Discounting
        1. Interest Rate Concepts
          1. Discount Factors
            1. Continuous Compounding
            2. Present Value and Future Value
              1. Net Present Value Calculations
                1. Annuities and Perpetuities
                  1. Growing Annuities
                2. Project Cash Flow Analysis
                  1. Capital Expenditures
                    1. Initial Investment
                      1. Sustaining Capital
                        1. Expansion Capital
                          1. Closure Costs
                          2. Operating Expenditures
                            1. Direct Operating Costs
                              1. Indirect Operating Costs
                                1. Fixed and Variable Costs
                                2. Revenue Forecasting
                                  1. Production Schedules
                                    1. Price Assumptions
                                      1. By-product Credits
                                      2. Tax Considerations
                                        1. Depreciation Methods
                                          1. Tax Rates and Timing
                                            1. Tax Shields
                                            2. Working Capital
                                              1. Inventory Management
                                                1. Receivables and Payables
                                                  1. Working Capital Changes
                                                2. Investment Decision Criteria
                                                  1. Net Present Value
                                                    1. Calculation and Interpretation
                                                      1. NPV Profiles
                                                      2. Internal Rate of Return
                                                        1. Calculation Methods
                                                          1. Multiple IRR Problem
                                                            1. Modified IRR
                                                            2. Payback Period
                                                              1. Simple Payback
                                                                1. Discounted Payback
                                                                  1. Limitations
                                                                  2. Profitability Index
                                                                    1. Calculation and Use
                                                                      1. Ranking Projects
                                                                      2. Equivalent Annual Cost
                                                                      3. Cost of Capital
                                                                        1. Weighted Average Cost of Capital
                                                                          1. Components of WACC
                                                                            1. Calculation Methods
                                                                              1. Tax Effects
                                                                              2. Capital Asset Pricing Model
                                                                                1. Systematic and Unsystematic Risk
                                                                                  1. Beta Estimation
                                                                                    1. Risk-free Rate
                                                                                    2. Cost of Equity
                                                                                      1. Cost of Debt
                                                                                        1. Country Risk Adjustments

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                                                                                      3. Economics of Mineral Exploration

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                                                                                      5. Risk and Uncertainty in Mine Investment